Hong Kong Securities Regulator Explores Easing Fund Recognition Measures

Potential Relaxation of Mutual Fund Recognition Measures in Hong Kong

According to PANews, Leung Fung-yee, the CEO of the Hong Kong Securities and Futures Commission (SFC), revealed exciting developments during the Wealth Management Summit. By the end of this year, there might be a relaxation of mutual fund recognition measures between Mainland China and Hong Kong.

Expanded Cross-Border Financial Services

This potential shift follows the recent expansions of the cross-border Wealth Management Connect and ETF Connect. These initiatives have significantly broadened the sales network of Hong Kong funds within Mainland China, allowing for a greater flow of investment opportunities.

Regulatory Focus on Investor Protection

During her address, Leung stressed that the SFC's approach to the regulation of virtual assets is centered more on the products than the technology itself. The primary aim is to ensure the protection of investors and to confirm that adequate security measures are in place.

Collaboration with HKMA for Innovative Solutions

The SFC is currently working closely with the Hong Kong Monetary Authority (HKMA) to explore the possibilities of using tokenized deposits in bond and fund subscriptions through a pilot program. This initiative is designed to enhance the financial ecosystem in Hong Kong by integrating cutting-edge financial technologies while ensuring stringent regulatory oversight to protect investors.

Conclusion

The proactive steps being taken by the SFC and HKMA indicate a strong commitment to fostering a secure and innovative financial environment in Hong Kong. Investment in mutual funds and other financial instruments is expected to continue growing, especially with the potential relaxation of measures for cross-border investments.